AB380-ASA2,8,128 2. For taxable years beginning after December 31, 2001, if the numerator of the
9sales factor under sub. (9) related to a taxpayer's remaining net income is a negative
10number and the denominator of the sales factor under sub. (9) related to a taxpayer's
11remaining net income is a positive number, a negative number, or zero, none of the
12taxpayer's remaining net income is apportioned to this state.
AB380-ASA2,8,1713 (c) 1. For taxable years beginning before January 1, 2002, if the numerator of
14the sales factor under sub. (9) related to a taxpayer's remaining net income is a
15positive number and the denominator of the sales factor under sub. (9) related to a
16taxpayer's remaining net income is zero or a negative number, the sales factor under
17sub. (9) is one.
AB380-ASA2,8,2218 2. For taxable years beginning after December 31, 2001, if the numerator of the
19sales factor under sub. (9) related to a taxpayer's remaining net income is a positive
20number and the denominator of the sales factor under sub. (9) related to a taxpayer's
21remaining net income is zero or a negative number, all of the taxpayer's remaining
22net income is apportioned to this state.
AB380-ASA2, s. 17 23Section 17. 71.25 (7) (intro.) of the statutes is amended to read:
AB380-ASA2,8,2524 71.25 (7) Property factor. (intro.) For purposes of sub. (5) (6) and for taxable
25years beginning before January 1, 2002
:
AB380-ASA2, s. 18
1Section 18. 71.25 (8) (intro.) of the statutes is amended to read:
AB380-ASA2,9,32 71.25 (8) Payroll factor. (intro.) For purposes of sub. (5) (6) and for taxable
3years beginning before January 1, 2002
:
AB380-ASA2, s. 19 4Section 19. 71.25 (9) (d) of the statutes is amended to read:
AB380-ASA2,9,125 71.25 (9) (d) Sales, other than sales of tangible personal property, are in this
6state if the income-producing activity is performed in this state. If the
7income-producing activity is performed both in and outside this state the sales shall
8be divided between those states having jurisdiction to tax such business in
9proportion to the direct costs of performance incurred in each such state in rendering
10this service. Services performed in states which do not have jurisdiction to tax the
11business shall be deemed to have been performed in the state to which compensation
12is allocated by sub. s. 71.25 (8) , 1999 stats.
AB380-ASA2, s. 20 13Section 20. 71.25 (10) (b) of the statutes is renumbered 71.25 (10) (b) 1. and
14amended to read:
AB380-ASA2,9,2115 71.25 (10) (b) 1. In this section, for taxable years beginning before January 1,
162002,
"public utility" means any business entity described under subd. 2. and any
17business entity which owns or operates any plant, equipment, property, franchise,
18or license for the transmission of communications or the production, transmission,
19sale, delivery, or furnishing of electricity, water or steam the rates of charges for
20goods or services of which have been established or approved by a federal, state or
21local government or governmental agency. "Public
AB380-ASA2,9,25 222. In this section, for taxable years beginning after December 31, 2001, "public
23utility" also means any business entity providing service to the public and engaged
24in the transportation of goods and persons for hire, as defined in s. 194.01 (4),
25regardless of whether or not the entity's rates or charges for services have been

1established or approved by a federal, state or local government or governmental
2agency.
AB380-ASA2, s. 21 3Section 21. 71.25 (10) (c) of the statutes is amended to read:
AB380-ASA2,10,84 71.25 (10) (c) The net business income of railroads, sleeping car companies, car
5line companies, pipeline companies, financial organizations, air carriers and public
6utilities requiring apportionment shall be apportioned pursuant to rules of the
7department of revenue, but the income taxed is limited to the income derived from
8business transacted and property located within the state.
AB380-ASA2, s. 22 9Section 22. 71.25 (11) of the statutes is amended to read:
AB380-ASA2,10,2010 71.25 (11) Department may waive factor. Where, in the case of any corporation
11engaged in business within in and without the outside this state of Wisconsin and
12required to apportion its income as provided in sub. (6), it shall be shown to the
13satisfaction of the department of revenue that the use of any one of the 3 factors
14provided in sub. (6) gives an unreasonable or inequitable final average ratio because
15of the fact that such corporation does not employ, to any appreciable extent in its
16trade or business in producing the income taxed, the factors made use of in obtaining
17such ratio, this factor may, with the approval of the department of revenue, be
18omitted in obtaining the final average ratio which is to be applied to the remaining
19net income. This subsection does not apply to taxable years beginning after
20December 31, 2001.
AB380-ASA2, s. 23 21Section 23. 71.45 (3) (intro.) of the statutes is amended to read:
AB380-ASA2,11,522 71.45 (3) Apportionment. (intro.) With respect Except as provided in sub. (3d),
23to determine Wisconsin income for purposes of the franchise tax, domestic insurers
24not engaged in the sale of life insurance but which that, in the taxable year, have
25collected received premiums, other than life insurance premiums, written on

1subjects of
for insurance on property or risks resident, located or to be performed
2outside this state, there shall be subtracted from multiply the net income figure
3derived by application of sub. (2) (a) to arrive at Wisconsin income constituting the
4measure of the franchise tax an amount calculated by multiplying such adjusted
5federal taxable income
by the arithmetic average of the following 2 percentages:
AB380-ASA2, s. 24 6Section 24. 71.45 (3) (a) of the statutes is amended to read:
AB380-ASA2,11,227 71.45 (3) (a) The Subject to sub. (3d), the percentage of total determined by
8dividing the sum of direct
premiums written on all property and risks for insurance
9other than life insurance, with respects to all property and risks resident, located,
10or to be performed in this state, and assumed premiums written for reinsurance,
11other than life insurance, with respect to all property and risks resident, located, or
12to be performed in this state, by the sum of direct premiums written for insurance
13on all property and risks, other than life insurance,
wherever located during the
14taxable year, as reflects
, and assumed premiums written on insurance for
15reinsurance on all property and risks
, other than life insurance, where the subject
16of insurance was resident, located or to be performed outside this state
wherever
17located. In this paragraph, "direct premiums" means direct premiums as reported
18for the taxable year on an annual statement that is filed by the insurer with the
19commissioner of insurance under s. 601.42 (1g) (a). In this paragraph, "assumed
20premiums" means assumed reinsurance premiums from domestic insurance
21companies as reported for the taxable year on an annual statement that is filed with
22the commissioner of insurance under s. 601.42 (1g) (a)
.
AB380-ASA2, s. 25 23Section 25. 71.45 (3) (b) of the statutes is renumbered 71.45 (3) (b) 1. and
24amended to read:
AB380-ASA2,12,5
171.45 (3) (b) 1. The Subject to sub. (3d), the percentage of determined by
2dividing the payroll, exclusive of life insurance payroll, paid in this state in the
3taxable year by
total payroll, exclusive of life insurance payroll, paid everywhere in
4the taxable year as reflects such compensation paid outside this state.
5Compensation
.
AB380-ASA2,12,14 62. Under subd. 1., payroll is paid outside in this state if the individual's service
7is performed entirely outside in this state; or the individual's service is performed
8both within and without in and outside this state, but the service performed within
9outside this state is incidental to the individual's service without in this state; or
10some service is performed without in this state and the base of operations, or if there
11is no base of operations, the place from which the service is directed or controlled is
12without in this state, or the base of operations or the place from which the service is
13directed or controlled is not in any state in which some part of the service is
14performed, but the individual's residence is outside in this state.
AB380-ASA2, s. 26 15Section 26. 71.45 (3d) of the statutes is created to read:
AB380-ASA2,12,1916 71.45 (3d) Premiums factor; domestic insurers. For taxable years beginning
17after December 31, 2001, a domestic insurer that is subject to apportionment under
18sub. (3) and this subsection shall multiply the net income figure derived by the
19application of sub. (2) by the percentage under sub. (3) (a).
AB380-ASA2, s. 27 20Section 27. 71.45 (3e) of the statutes is created to read:
AB380-ASA2,12,2521 71.45 (3e) Apportionment formula computation. (a) 1. For taxable years
22beginning before January 1, 2002, if both the numerator and the denominator used
23to determine the percentage under sub. (3) (a) related to a taxpayer's net income are
24zero, the percentage under sub. (3) (a) is eliminated from the apportionment formula
25to determine the taxpayer's income under sub. (3).
AB380-ASA2,13,4
12. For taxable years beginning after December 31, 2001, if both the numerator
2and the denominator used to determine the percentage under sub. (3) (a) related to
3a taxpayer's net income are zero, none of the taxpayer's net income is apportioned
4to this state.
AB380-ASA2,13,95 (b) 1. For taxable years beginning before January 1, 2002, if the numerator
6used to determine the percentage under sub. (3) (a) related to a taxpayer's net income
7is a negative number and the denominator used to determine the percentage under
8sub. (3) (a) related to a taxpayer's net income is a positive number, a negative number,
9or zero, the percentage under sub. (3) (a) is zero.
AB380-ASA2,13,1410 2. For taxable years beginning after December 31, 2001, if the numerator used
11to determine the percentage under sub. (3) (a) related to a taxpayer's net income is
12a negative number and the denominator used to determine the percentage under
13sub. (3) (a) related to a taxpayer's net income is a positive number, a negative number,
14or zero, none of the taxpayer's net income is apportioned to this state.
AB380-ASA2,13,1915 (c) 1. For taxable years beginning before January 1, 2002, if the numerator used
16to determine the percentage under sub. (3) (a) related to a taxpayer's net income is
17a positive number and the denominator used to determine the percentage under sub.
18(3) (a) related to a taxpayer's net income is zero or a negative number, the percentage
19under sub. (3) (a) is one.
AB380-ASA2,13,2420 2. For taxable years beginning after December 31, 2001, if the numerator used
21to determine the percentage under sub. (3) (a) related to a taxpayer's net income is
22a positive number and the denominator used to determine the percentage under sub.
23(3) (a) related to a taxpayer's net income is zero or a negative number, all of the
24taxpayer's net income is apportioned to this state.
AB380-ASA2, s. 28 25Section 28. 71.45 (3m) of the statutes is amended to read:
AB380-ASA2,14,8
171.45 (3m) Arithmetic average. The Except as provided in sub. (3d), the
2arithmetic average of the 2 percentages referred to in sub. (3) shall be applied to the
3net income figure arrived at by the successive application of sub. (2) (a) and (b) with
4respect to Wisconsin insurers to which sub. (2) (a) and (b) applies and which have
5collected received premiums, other than life insurance premiums, written upon for
6insurance, other than life insurance, where the subject of such insurance was on
7property or risks
resident, located or to be performed outside this state, to arrive at
8Wisconsin income constituting the measure of the franchise tax.
AB380-ASA2, s. 29 9Section 29. Nonstatutory provisions; revenue.
AB380-ASA2,14,1510 (1) Income apportionment for financial organizations; rules. The
11department of revenue shall submit in proposed form rules related to the
12apportionment of the income of financial organizations under sections 71.04 (4) (c)
13and 71.25 (6) (c) of the statutes, as created by this act, to the legislative council staff
14under section 227.15 (1) of the statutes no later than the first day of the 4th month
15beginning after the effective date of this subsection.
AB380-ASA2, s. 30 16Section 30. Initial applicability.
AB380-ASA2,14,1917 (1) Single sales factor apportionment. The treatment of section 71.45 (3)
18(intro.), (a), and (b) and (3m) of the statutes first applies to taxable years beginning
19after December 31, 2001.
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